Coverage of the Leveson Inquiry into the relationship between the police and
the press, as Rupert Murdoch gives evidence.

News Corporation Chief Executive and Chairman, Rupert Murdoch (R), arrives with his wife Wendi and son Lachlan (obscured) at the High court in London Photo: REUTERS/Andrew Winning

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Protesters from the campaign group Avaaz demonstrate outside the High Court with large James and Rupert Murdoch masks as former News International chairman James Murdoch gives evidence to The Leveson Inquiry in London, EnglandPhoto: Oli Scarff/Getty Images

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15.40 Scotland's First Minister Alex Salmond today denied any wrong-doing over the BSkyB takeover bid and insisted he would be "delighted" to appear before the Leveson Inquiry.

He said: "There can't be possibly any suggestion of wrong-doing or impropriety.

"What has happened to Jeremy Hunt's special adviser is totally different.

"It's a question of legality and quasi-judicial rule. That's not the position of the Scottish Government. It's ridiculous to look for a comparison and I'm sure Lord Justice Leveson will realise that as well.

"But I'm responsible for what goes on in the Scottish administration. I shall be delighted to go along to the Leveson Inquiry and explain why it's our responsibility to advocate jobs and investment for Scotland.

"There was no quid pro quo because we were not in any position to deliver any quid pro quo. There was no quid therefore there was no pro."

Asked about the claim he would contact Mr Hunt, he said: "That's email tittle-tattle, it's not representative of the fact. What's representative of the fact is I made my position clear and was happy to make that position clear to anybody, including to the press."

Scottish Labour leader Johann Lamont, along with Conservative leader Ruth Davidson and Liberal Democrat leader Willie Rennie, said in a joint statement: "Alex Salmond must tell us whether or not he offered to lobby the UK Government on behalf of the Murdoch family and News International with regard to their proposed takeover of BskyB."

14.50 Lord Justice Leveson has decided that they will break for today, and return for a proper final session with Mr Murdoch tomorrow morning. He reminds Mr Murdoch: "It's my decision."

Mr Murdoch thanks him. Dan Sabbagh, the Guardian's media editor, tweeted earlier that Mr Murdoch had been overheard telling aides: "Let's get him to get this f------ thing over with today."

14.40 Salmond's office has released a tranche of Murdoch-related papers.

Salmond wrote to Murdoch in New York, saying he found his views "insightful and interesting." He sends Murdoch a book by Senator Jim Webb, and talks about the notion of the 'Global Scot'.

He invites Murdoch to see a "rough, tough" production of Black Watch in New York.

Salmond writes again to Murdoch in 2009. In 2011 the Scottish Sun supports the SNP at election but is neutral on independence.

Did he contribute to that decision? "I don't remember but probably yes."

Why? "It's a little emotional but I am attracted by the idea, but I am not convinced so I said we should stay neutral on the big issue, but let's see how he performs."

What about the 'head in the noose' headline? "I didn't write that." What about the tone? "We decided to support Labour, yes, throughout."

"I don't know much about the SNP. I have met Mr Salmond a few times and find him an attractive person. And as I said to you, it's a nice idea."

Mr Dinsmore, the general manager of the News International in Scotland, congratulated Salmond on the victory and said he wanted News Int to help make Scotland a country where "outward looking, forward thinking and risk taking are the norm".

He adds, cryptically: "If I didn't continue to support Mr Salmond I really would have had an insurrection up there."

Michael Wolff, Murdoch's biographer and critic, tweets:

&lt;noframe&gt;Twitter: Michael Wolff - Rupert's politics really not about his business interests per se, but other personal-policy-emotional-last-person-he-talked-to mash &lt;a href="http://search.twitter.com/search?q=leveson" target="_blank"&gt;#leveson&lt;/a&gt;&lt;/noframe&gt;

14.34 Jay asks about Alex Salmond. Murdoch scoffs. The Scottish Sun was anti-SNP in 2007, saying 'Vote SNP today, put Scotland's head in the noose'. By 2010 the paper had swung behind Salmond

Between 17 November 2000 and 12 October 2007 there was no contact between Murdoch and Salmond, beyond possibly two telephone calls.

From 30 October 2007 there was far more contact, Mr Jay says. Murdoch says they had opened a large printing press, and Salmond was invited to be present.

They met for breakfast in 2008, where they "discussed their families Scottish roots." Salmond may have been in New York at the time. There are more telephone calls, and then in 2011 they discuss Scottish independence. In December 2011 they discuss News Corp's investments in Scotland.

"I don't know who wrote this," says Murdoch of his signed witness statement. "It wasn't to ask for anything. It might have been to apologise as we reduced Sky's employment numbers quite dramatically.

His relationship with Salmond is warm. "He is an amusing guy and I enjoy his company."

14.28 He went to No 10 for tea after Cameron's election, the witness statement says. Cameron thanked him for his support. Murdoch said the titles would be watching carefully to see he kept his promises. Coulson was present.

The BSkyB bid was announced shortly after. Were the support and the bid linked? No, says Murdoch.

Would the bid have been harder if Brown had won?

"I never gave it any thought. It was a legal bid, it was a commonplace bid and I did not see any problem."

He says he has advisors in Britain - and other countries - to brief him on the political and economic situation

Why was the bid announced one month after the election, not before?

Murdoch: "I don't know. I'd have to look at my records." Was he not advised on the best time to launch the £multi-billion bid? Was it pure coincidence it was one month later? "Yes."

14.25 The perception that his contact with polticians distorts the democratic process annoys him because is a "myth".

Murdoch says if he enters official residences by the back-door it is often because the car park is at the back.

14.15 Were the Tories not likely to be more amenable to a BSkyB share buyout than Labour?

"I didn't think it was the business of Government," he says. Controlling shareholders buy out their partners every day in business.

Mr Jay says there had always been a "political frisson" around his buyouts.

He welcomes the question. "I want to put it to bed that that is a complete myth, that I used the influence of the Sun, or the supposed political power, to get favourable treatment."

Is it not a recurring theme that he uses his power in that way? "Perhaps in the Guardian, or the Independent. If these lies are repeated again and again they catch on... They just aren't true."

Cameron was flown by Murdoch's son-in-law's plane on holiday in Turkey in 2008. He stopped off on his daughter's boat on Santorini.

Santorini

Is that normal?

"I think I've explained that politicians go out of their way to impress people in the press. I don't remember discussing any political things with him at all. I don't really remember the meeting. I think that's part of the democratic process. All politicians on all sides like to have their views known by editors and publishers hoping that they will be put across and succeed in impressing people."

He adds: "We are very lucky in this country that we have ten vibrant national newspapers to keep the national debate going."

"Mr Cameron might have thought stopping in Santorini would impress me. I don't have any feel toward the Tory party or the Labour party. I don't get invited to dinner at Downing Street."

He adds: "I enjoy meeting our leaders. Some impress me more than others. I meet them around the world. I could tell one or two who particularly impress me. You look at their policies, their personalities, their knowledge."

14.09 Did he discuss broadcasting regulation when they endorse Cameron?

No - if it was about business interests he would have backed the Tories at every election, he says, banging the table, because they are always pro-business. It was always about 'issues'.

Did they discuss licence fees? No. Ofcom? No. Andy Coulson's hiring as press man? No, I was just as surprised as anybody else.

Was he not curious? No. He's talked about the BBC with a lot of Prime Ministers. "They all hated the BBC and they all gave it whatever they wanted."

He was disdainful of the idea of top-slicing the BBC fee and giving the cash to rivals. "I'd never heard of that before. It sounds strange, and crazy."

He repeats the Tories were always more pro-business than Labour. "Against my better interests."

He said instead: "It was in my interests to reflect the views and talk to readers and perhaps attract more readers."

He felt "very strongly" when it was said British soldiers were not being properly protected in Afghanistan. He was not happy with Cameron's response they were as well protected as Europeans; they should have been as well-protected as US troops.

He corrects himself - he said Cameron twice, but he meant Brown.

14.05 Murdoch says he first met Cameron in 2010 at picnics hosted by his daughter in the grounds of Blenheim Palace. They didn't talk politics; they were "over-run with children". He was impressed at his kindness with children and how he was a "family man." He refers to Cameron's "retarded son," showing his age.

Did, when asked what he thought of him, say: "Nothing much". He doesn't recall. Did you think him a lightweight? "No, not then."

David Cameron looked frightened, which is unusual. It must be serious. He knows this one ends up on his desk. Jeremy Hunt is a sideshow – or soon to be a closed sideshow. As is Adam Smith. If the PM is the organ grinder, then the SpAd is the monkey's monkey. his departure makes no difference

13.52 His performance in the Commons this morning has led Twitter to christen Jeremy Hunt the 'Black Knight of British Politics'. "Your arm's off!" "Tis but a scratch!".

13.22 BREAKING David Cameron has asked the Cabinet Secretary to write to government departments clarifying the procedures for handling quasi-judicial cases.

13.03 More on the Hunt statement in the Commons.

Harman says: "His role was to be impartial but he wasn't. He wasn't judging the bid, he was backing it."

Hunt replies: "If I was backing the bid I wouldn't have sought the advice of independent regulators. The idea I was backing this bid is laughable."

Murdoch foe Tom Watson says: "Does the Culture Secretary expect us to believe all these incriminating emails were the work of one rogue adviser?"

Fraser Wishart of the SNP gets up to ask a question. The Labour MPs shout: "Alex Salmond!"

Dennis Skinner says: "When posh boys are in trouble they sack their servants."

Hunt says the line about him being a "cheerleader" for Murdoch was from an article in Broadcast magazine, not by him.

Jeremy Hunt with special adviser Adam Smith

12.57 Murdoch is asked about the BSkyB buyout.

"It was turned into a political issue in this country by our enemies. I should says competitors."

He says with hindsight he regrets agreeing to an IPO of BSkyB.

It did not occur to Murdoch that Brown's war on News Corp included blocking the BSkyB buyout.

We are breaking for lunch. Murdoch says he would rather not return tomorrow, but Mr Jay says he would rather spend 45 minutes on it this afternoon and then do three hours' evidence tomorrow rather than "power through" today.

12.48 He is asked about the 2010 defection of The Sun from Labour to the Tories.

The country had had enough of Labour, he says, after a long run.

Didn't he know Labour would lose?

"The election was a long way away. I had no idea."

Did Brown "roar at you for 20 minutes," as Mackenzie alleged?

It's a "colourful exaggeration," Murdoch says. Brown did call and asked: "Do you know what's going on here." Murdoch says he replied: "I was not warned of the exact timing, I'm not aware of what they're saying, but I'm sorry to tell you Gordon we will support a change of government if there is an election."

Murdoch says Brown responded, not shouting: "Well, your company has declared war on your government. We have no alternative but to delcare war on your company."

Murdoch responded: "I'm sorry to hear that Gordon." The call ended.

He is asked how it is possible to declare war on a company. He takes a long pause.

"I don't know. I don't think he was in a very balanced state of mind. Frankly, he could have.. I don't know. Set up more commissions, God knows, there's plenty of quangos and commissions around us know."

"When the hacker scandal broke he made a totally outrageous statement that he had to know what wrong and he called us a criminal organisations. He said we'd hacked into his personal medical records when he knew well how the Sun had found out about his son."

He says Mrs Brooks took personal charge of the story about Fraser Brown's illness, and contacted Mrs Brown. Mr Brown "wrote a personal letter" thanking Brooks for her "sensitive" handling of the story. "I believe that story is in the hands of the police," he says.

12.44 Jay says Mr Murdoch stayed at Chequers the weekend of 6-7 October 2007 with the Browns.

"Was that the pyjama party weekend?" No, says Jay, that was another time. Murdoch recalls meeting JK Rowling at the event.

Did they discuss a snap election? "I'm sure he didn't ask me. If any politician wanted my opinion on a major matter they only had to read the editorials in the Sun."

12.40 Back to Leveson.

Mr Jay notes all of Murdoch's 175 newspapers supported the war in Iraq.

Mr Jay asks whether Murdoch made it a condition of support in the 2005 election that Labour hold a referendum on the new EU constitution? No, says Murdoch.

The Guardian's Dan Sabbagh tweets:

&lt;noframe&gt;Twitter: Dan Sabbagh - Every time somebody has written that Murdoch asked for something of a politician, Murdoch denies it or has forgotten.&lt;/noframe&gt;

12.34 Jeremy Hunt is on his feet in the House of Commons to defend himself against the revelations yesterday.

He will respond fully at the Leveson Inquiry. "This is not the time to jump on a political band-wagon."

His voice breaks. "What the public want to hear is not the Rt Hon Gentleman's views, not my views, but the views of Lord Justice Leveson as he hears all the evidence."

He has "strictly followed due process" during the BSkyB bid. He was acting on the advice of regulators and published all advice from Ofcom and the OFT, and says he has published all correspondence with News Corp.

The transcripts published between Smith and Michel were "alleged to be a back channel". But Hunt says: "This was categorically not the case." Tories cheer.

"The volume and tone of those communications were clearly not appropriate in a quasi-judicial process," he says. Smith has overstepped the mark but "did so unintentionally and did not believe he was doing anything more than advising on process." Smith has resigned, but he is a "man of integrity and decency."

"It is a matter of huge regret that this has happened."

The communications did not influence his decision on BSkyB and he only saw them yesterday, he says.

He is confident the public will see he conducted the process in a "scrupulous" manner.

12.26 Murdoch is quizzed about a Blair editorial in the Times saying he will leave Thatcher's union laws in place. Murdoch didn't read it.

Did he congratulate him on it at dinner that night?

"I doubt it. But it's possible."

They are no discussing whether Blair lobbied Romano Prodi over a possible purchase of La Stampa. Murdoch may have discussed it with Blair.

They move onto the decision to pull the plug on Lord Patten's tell-all book on his work in Hong Kong. It is alleged Murdoch canned the book at his publishing house because he wanted to expand his interests in China, to please the Chinese authorities. Murdoch says this is "half right."

"I have always taken the view that Lord Patten was a very bad governor of Hong Kong... I did step in and say, don't do it. I wish to say now was one more mistake of mine."

12.25 Tim Ross emails from the Commons:

Cameron's left hand was shaking during the angry clash with Miliband over Hunt/Leveson. The Labour leader revives the ghost of the Major years by claiming the shadow of "sleaze" now hangs over the government.

But loud cheering from Tory benches when the PM declares his "full support" for the Culture Secretary.

Hunt, meanwhile, is reading through papers on his knee, pen in hand, making last minute adjustments to his imminent statement perhaps.

12.13 Back to Leveson. Murdoch says Jay is "making inferences" about his relationship with Blair. In ten years in power he "never asked Mr Blair for anything." He adds: "If you want to check you should call him."

12.09 Cameron quotes Lord Justice Leveson at PMQs - saying the judge must hear all sides of the story before drawing conclusions about Jeremy Hunt.

Ed Miliband says: "Leveson not responsible for integrity of Govt, it's the PM. It beggars belief that PM defends Hunt."

Ed says Hunt's office hatched a plan to ensure success of one side of the bid.

Hunt, looking white and strained, is shaking his head.

Cameron says: "The Culture secretary has my full support for the excellent job that he does." Labour MPs are waving goodbye and laughing.

Ed says: "The shadow of sleaze will hang over this Government. Time to stop putting his cronies before the interests of the country"

12.06 Hunt has arrived at PMQs late, two questions in. His hand is shaking as he clutches a copy of his speech, Michael Deacon tells me.

12.03 We hear about Murdoch's relationship with Blair. After meeting in 1994, he was reported by Andrew Neil to have said: "He certainly says all the right things but we are not letting our pants down just yet."

He does not deny suggesting that they would "soon be making love like porcupines" shortly after Blair's 1995 speech at a News Corp conference.

Mr Jay cites a source in Alastair Campbell's book: "The only thing he cares about is his business and the only thing he respects is strength."

"Certainly not," says Murdoch.

But he admits: "We all like to back the winning race horse. We like to be on the winning side."

11.45 Is it fair to say that you generally back the winning side?

"No. I'm trying to think when we didn't. It's certainly true the last election in America the WSJ and New York Post opposed the almost certain victory of President Obama... We work on the same principles everywhere. We try to judge the candidates on the issues."

He adds: "I never let my commercial interests, whatever they are, influence any consideration of elections. Give me an instance."

Mr Murdoch has become a bit confused about who won the 1992 election, but says he did not meet Major - or know many politicians.

"Our approach to public affairs is to take issues by issues." Mr Jay suggests he is "oblivious" to commercial interests when deciding election outcomes. "Absolutely. I have no commercial interests except the newspaper. I love newspapers."

But what about his duty to shareholders?

"They tell me to get rid of them all."

11.40 Murdoch is asked about his influence on politicians.

"People can stop buying my newspapers anytime. Often do, I'm afraid. It's only natural for politicians to reach out to editors and proprietors if they are available and explain what they are doing. But I am only one of several. Even today, I am one of several."

Andrew Neil says he was given free reign to back Heseltine against Thatcher in 1990 as editor of the Sunday Times. Murdoch let him, but told him: "The paper will be seen as having turned tail when the going got rough... We owe Thatcher a lot as a company, don't go overboard on it."

Murdoch does not recall saying this.

Murdoch says he did not approve of the headline: "It was the Sun wot won it" after the 1992 election. He gave Kelvin Mackenzie a "hell of a bollocking" for it. "I just thought it was tasteless and wrong for us. It was wrong in fact. We don't have that sort of power."

He says The Sun has no Labour or Tory roots. "We are perhaps the only independent newspaper in the business," he says. There is laughter in the public gallery.

Gordon Brown wrote personal letters to Rupert Murdoch pleading with him to stop The Sun criticising his handling of the Afghan war in the month before the 2010 general election.

The Sun had repeatedly accused Mr Brown of letting down British soldiers by failing to pay for proper equipment, and Mr Brown feared the coverage was going to be ruinous to his election hopes.

An exchange of letters submitted to the Leveson Inquiry by Rupert Murdoch gives a fascinating insight into the extent to which Mr Brown feared that negative coverage in The Sun could help decide his fate, and the lengths to which he went to try to put a stop to it.

Mr Brown wrote to Mr Murdoch on April 5, 2010, telling him that when they had spoken some time earlier: “You agreed that The Sun would stop attacking our defence policy in Iraq and Afghanistan.

“Yet almost every day in recent weeks, The Sun has chosen to accuse me personally of letting the Armed Forces down…

“I will stand firm for our policy against the Taliban. Indeed, even with an election imminent, I raised our number of troops in Afghanistan…but it is unfair, to say the least, to find the newspaper that says it supports the campaign in Afghanistan undermining public support by the way it behaves.

11.31 Woodrow Wyatt recounts an election night party in 1992 at Cliveden. On defeat, Ken Livingstone blamed the "lies and smears of the media".

While it was part of my role to keep News Corporation informed throughout the BskyB bid process, the content and extent of my contact was done without authorisation from the Secretary of State. I do not recognise all of what Fred Michel said, but nonetheless I appreciate that my activities at times went too far and have, taken together, created the perception that News Corporation had too close a relationship with the department, contrary to the clear requirements set out by Jeremy Hunt and the permanent secretary that this needed to be a fair and scrupulous process. Whilst I firmly believe that the process was in fact conducted scrupulously fairly, as a result of my activities it is only right for me to step down as special adviser to Jeremy Hunt.

11.19 We are hearing about Murdoch's relationship with Rebekah Brooks - then Wade.

He agrees with her that he knew her "social views, cultural views, political views" before he made her editor.

He is asked about gossip about celebrities. It is a revealing monologue.

"So much of that material is provided by paid public relations people working for those people, it is our job to look behind that material.

"I don't believe in using hacking, in using private detectives. That is a lazy way of reporters not doing their job. But it is fair when people are held up as great actors they are looked at. We did a great example of it, Simon Cowell. A lot of these people are very big in the lives of ordinary people - big television stars, film stars, and of course I must include politicians... I even get into press proprietors in that. They are not entitled to the same privacy as ordinary people.

"If we are going to have a transparent society, transparent democracy, let's have everything out in the open."

He adds: "We are nothing compared to what you see in the internet every day."

Leveson suggests they are just good at what they do, rather than being a public figure with effects on the public.

Murdoch wanders off: "I think people who hold great responsibility.... I really welcomed, was jealous of, the Daily Telegraph buying all the expense accounts of the members of Parliament. The Sunday Times followed later with members of the House of Lords. I think that was a great public service, I'm disappointed the editor of the Times didn't buy them when they were offered to him first. Obviously the DPP has decided that was in the public interest and not to prosecute".

11.18 BREAKING Adam Smith, the Special Advisor to Jeremy Hunt, has resigned, saying he acted "without authorisation" from the Culture Secretary.

10.58 Mr Jay quotes Fred Emery, a former assistant editor of the Times. He claims Murdoch said: "I give instructions to me editors all round the world. Why should I not in London?"

Fred Emery also claimed Murdoch said the undertakings to the Secretary of State were "not worth the paper they are written on." Murdoch denies this.

Under Douglas-Hume the paper became pro-Tory.

Roy Greenslade said Murdoch was "one of the main powers behind the Thatcher throne."

"The Times? No. The Sun. If you want to judge my thinking, look at the Sun."

He adds he "never gave instructions" to the editor of The Times or Sunday Times. He would ring perhaps twice a week "out of curiosity" or "To say 'That was a damn fine paper you had last week.'"

He is asked about setting the agenda of the Sun.

He did so much more than he did with the NOTW. "It's a daily paper, it has a sense of urgency."

"I'm an curious person interested in the political issues of the day, and I'm not good at holding my tongue... I'm not disowning it."

He was involved in the publication of the Hitler Diaries by the Sunday Times in 1983. "I'm sorry to say, yes." Did he overrule the sceptical historian Hugh Trevor Roper?

"That is a very small part of the story." He says he urged the editor to publish. "I take full responsibility... it is a regret I will have to live with for the rest of my life."

A younger Rupert Murdoch

10.54 Did tabloid standards deteriorate between 1968 and 1981 under him?

No, says Murdoch. "We expanded to a new young public."

He adds: "The Sun has not been a better paper than it is today. I couldn't say the same about my competitors but we won't go into that."

Mr Jay asks if he improved the commercial appeal of the NOTW and Sun with no regard to ethics.

"It was always to tell the truth, certainly to interest the public, get their attention, but always to tell the truth... I have great respect for the British public and I try to carry that through."

So the market - the public - is the best arbiter of what should go in, is that fair?

"Yes, I think so, absolutely."

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10.45 Jonathan Aitken was "profoundly unhappy" with the deal. He said the were resignations of reporters in protest at the papers' lines, Murdoch's Australian papers were biased and used to push Murdoch's commercial interest. Murdoch disputes all this. "I take a particularly strong pride that we have never pushed our commercial interests in our newspapers."

He adds he expects a high degree of ethical behaviour from employees. "Do I have an aura or charisma? I don't think so."

Leveson notes he has had many editors and that it is unsuprising if they were cautious from dissenting "out of respect for your views."

He replies: "Our editors have generally been very long serving. I invite you to have all the living ones up here."

10.42 BREAKING Culture Secretary Jeremy Hunt to make statement to parliament at 12.30pm

10.34 Murdoch met the Secretary of State for Trade on 26 January 1981, John Biffin.

Biffin said the claim that his bid would collapse if he was referred to the Mergers and Monopolies Commission was "totally misleading." But it would result in a loss to Murdoch and Thompson and delay negotiations with the unions.

The Attorney General said it must be referred unless the matter was "urgent" and the papers were not going concerns.

The Times was felt by Murdoch to be not a going concern. The picture about the Sunday Times was less clear.

At Cabinet, Biffin felt there was little to be gained commercially by sending it to the MMC, but risks to the bid if they did by increasing uncertainty. It was felt Murdoch's guarantees to protect editorial independence could be cemented by under Biffin's consent.

"Frankly it was the Thompsons who put a gun to the head of Mr Biffin," says Murdoch - not him. The Thompsons had had strikes from printers, followed by journalists for three months. They had become "very embittered."

10.31 We hear about the arrangements for the buyout. Murdoch agreed to keep the Times and Sunday Times separate and guarantee editors' independence. It was a continuation of Lord Thompson's arrangements, with the number of independent directors boosted from four to eight.

Is that a sign of the potential power of proprietors?

Murdoch says: "Yes, I think sometimes overestimated, but certainly they have power. If an editor is sending a newspaper broke it is the responsibility of the proprietor to step in," he says - out of duty to staff and shareholders.

10.27 The notes show the PM thanked Murdoch for keeping her posted. She wished him well on the bid and said there was a need for reforms of Fleet Street, particularly new technology. There were no favours granted, says Jay.

"And none granted."

He adds: "I've never asked a Prime Minister for anything."

Jay suggests the deal was more sophisticated and unspoken agreement to help.

"I didn't expected any help from her. Nor did I ask for any."

What about it going to the monopolies and mergers commission?

"That didn't worry me in the least," says Murdoch.

10.23 We hear about Murdoch's meetings with President Reagan. Jay says they were "all on the same page, politically." Murdoch pauses - for a long time. "Yes, that's fair."

He explained to Mrs Thatcher the nature of his bid. "This was the movement of a great institution under threat of closure and it was perfectly right that she should know what was at stake... There'd be great problems with the unions which extended the costs and risks. I'm sure she'd be interested."

Jay suggests he was trying to show he had the "will to crush the unions" and prove he was the right man for the titles.

"I didn't have the will to crush the unions. I might have had the desire, but that took several years," says Murdoch.

10.17 Mr Jay asks about Murdoch's history of acquisitions and launches - the News of the World, Sun, then the Times and Sunday Times in 1981.

On January 4 1981 he lunched with Mrs Thatcher at Chequers. Bernard Ingham, the press secretary, took a note the following day and sent them to the PM. Murdoch says the minutes are correct. He asked to see the PM and she said "Why don't you come to lunch on Sunday."

Last year Mr Murdoch told a select committee he wished politicians would leave him alone. "You weren't talking about this meeting, were you," said Mr Jay. Murdoch says he was informing her and Lord Thompson of his wish to buy the "iconic titles."

10.15 Murdoch is asked if he is a great admirer of Baroness Thatcher. The Sun backed her in '79.

"I became that after she was elected. I remain a great admirer... We'd just come through the winter of discontent, strikes, disruption to society. We all wanted change."

His witness statement says Libertarianism means "as little government as possible." He says there must be rules.

He is asked about tweets criticising "right wingers and toffs." He replies: "Oh don't take my tweets to seriously. People were piling in on me from both sides."

10.10 Keith Rupert Murdoch is taking the oath in his gravelly Australian accent.

About 8 per cent of News Corp's $34bn revenues come from Britain. He says it is "untrue" that he has not forgiven Cameron for setting up the inquiry.

"The need is fairly obvious. There have been some abuses. The state of media in this country is of absolutely vital interest to all its citizens." He adds: "I welcome the opportunity because I wanted to put certain myths to bed."

Do the abuses go beyond phone hacking? "Oh, they go further."

10.07 We're up. Leveson is not happy, again, with some of the press commentary. On Monday he said he would be taking a neutral view on the evidence. The reaction and "considerable commentary" last night has led him to say a bit more.

Yesterday's reaction was understandable, but, he warns, yesterday's emails and documents should "not be taken at face value." "It is very important to hear every side of the story before drawing conclusions." That is part of the judicial process, he adds.

10.01 News Corporation Chief Executive and Chairman, Rupert Murdoch (R), arrives with his wife Wendi and son Lachlan at the High court in London

09.58 Andrew Hough has prepared the key questions Rupert Murdoch must answer - including, crucially, do you have confidence in the ability of your son, James, to be involved in your business at a high level?

Jeremy Hunt, the Culture Secretary, was on Tuesday night facing demands for his resignation after emails released by the Murdoch family disclosed that his office offered “absolutely illegal” advice to News Corporation executives.

In a series of disclosures on by far the most dramatic day so far of the Leveson Inquiry, the Cabinet Minister’s key political adviser was revealed to have given apparently confidential information on a regular basis over several months to a lobbyist working for James Murdoch.

David Cameron is facing calls for an inquiry into his own behaviour after James Murdoch said the two men discussed News Corporation’s controversial bid to buy out BSkyB at a Christmas dinner for the so-called “Chipping Norton set”.

The Prime Minister had previously played down suggestions that he talked about the £8billion bid during a meal at the home of Rebekah Brooks, the then chief executive of News International, on Dec 23, 2010.

The relationship between Frederic Michel and Jeremy Hunt was built on a “shared night of anxiety”.

The wives of the Culture Secretary and a News Corporation lobbyist were both giving birth on the same ward in a Chelsea hospital in May 2010. This was how Jeremy Hunt, an ambitious minister in the new coalition government, became friends with Frederic Michel, the head of public affairs at News Corp.

Alex Salmond is struggling to defuse a growing political scandal over allegations he offered to help Rupert Murdoch’s attempted takeover of BSkyB in return for the Scottish Sun backing the SNP.

The First Minister is to appear before the Leveson Inquiry to explain the contents of an extraordinary email that said he was willing to contact Jeremy Hunt, the Culture Secretary, “whenever” News Corp asked him.

The Prime Minister has shown a disappointing lack of candour in his dealings with James Murdoch.

Evidence made public at the Leveson Inquiry yesterday reveals in some detail just how intimate were relations between Rupert Murdoch’s company, News Corp, and the Government. In particular, it proves that Jeremy Hunt, the Secretary of State for Culture, Media and Sport, was News Corp’s very good friend at court. Mr Hunt had said on his own website that he was “like all good Conservatives… a cheerleader for Rupert Murdoch’s contribution” to the media industry. Emails from the computer of Frederic Michel, head of public affairs at News Corp, show Mr Hunt to have been as good as his word as the company tried to take over the whole of BSkyB. On one occasion, Mr Michel said in an email to Mr Murdoch’s son, James, that he had “managed to get some info” on what Mr Hunt would announce to Parliament the next day, “although absolutely illegal!” On another, Mr Michel revealed the existence of an agreed “plan” between News Corp and the Government that would lead to “game over for the opposition”.

09.31 Last night JeremyHunt issued a statement following yesterday's explosive release of emails showing collusion between the Culture Secretary's staff and Frederic Michel, a lobbyist for News Corporation.

Now is not a time for kneejerk reactions. We've heard one side of the story today but some of the evidence reported meetings and conversations that simply didn't happen. Rather than jump on political bandwagon, we need to hear what Lord Justice Leveson thinks after he's heard all the evidence.

Let me be clear my number one priority was to give the public confidence in the integrity of process. I asked for advice from independent regulators - which I didn't have to do - and I followed that advice to the letter. I would like to resolve this issue as soon as possible which is why I have today written to Lord Justice Leveson asking if my appearance can be brought forward. I am very confident that when I present my evidence the public will see that I conducted this process with scrupulous fairness.

09.30 Today the Leveson Inquiry will take evidence from Rupert Murdoch, the octogenerian head of News Corp and the owner of three British newspapers. The performance is likely to be less slick and assured than that given by James Murdoch yesterday. This is what Michael Wolff, his biographer, told the Daily Telegraph as the NOTW folded last summer:

Right now the difficulty is that Rupert is incredibly old. He is an old 80, which makes him seem like 100. I just don't think he is up to it any more. I've spent a lot of time with him and it was weird. Often he's fine, but it was very hard for him to follow the track of the conversation. He's an old guy. You think, 'Oh my god, this guy is old'.

09.20 Good morning and welcome to our live coverage of theLeveson Inquiryinto the relationship between the press and the police.